Many CUs Lack Flood Insurance
Even while credit union executives are digging out from Hurricane Katrina, and now Hurricane Rita, a new problem has emerged: many of the damaged credit unions do not have flood insurance. "Most of the credit unions in Louisiana and Mississippi did not have flood insurance because they were not in a flood plain," said John Franklin, chief operating officer for CUNA, who has been organizing the trade association's emergency relief efforts. "When the levees broke the damage caused was flood damage." Franklin, speaking during CUNA Future Forum, said only 18 affected credit unions and Louisiana and one in Mississippi had flood insurance, leaving dozens of institutions that had priority ruined or damaged without coverage.